Level 2
Level 1

Starting a business

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An activity that requires the organisation of resources to achieve a reward, whilst running a risk.
An individual with an idea for a business.
Social Enterprise
An activity that achieves a reward for society.
Gap in the market
A business opportunity that is either a completely new idea or adds something different to an existing product or service.
The legal right to use the name and logo of an existing firm and sell the same products.
Business aim
A stated target for the future. For example, a new business may have the aim to survive its first year of trading.
Business objective
A clearly defined target for a business to achieve over a certain period of time.
An increase in turnover (sales), market share or profit.
Revenue - costs - What is left after costs have been deducted from revenue.
Profit margin
Profit made as a proportion of sale revenues.
The amount of sold or the value sold (e.g. 200 units or £400).
Market Share
The proportion of total market sales sold by one business.
Customer satisfaction
How happy the the customer is with the product or service.
The moral questions on which decisions are made and the impact the business has on its internal and external environment.
The value of sales made during a trading period, also called revenue.
An individual or group with an interest in a business, such as employees, customers, managers, shareholders, suppliers, competitors and the local community.
Business plan
A statement showing how a business sets out to achieve its aims and objectives.
The capital (money) provided for the various stages of business growth by different sources of finance, either on a short or long-term basis.
A technique where the business attempts to estimate future sales, or other financial variables.
The potential for loss but rewards in business make it a calculated gamble.
Not knowing the future, or what is going to happen.
Sole Trader
The most common form of business organisation, often just one person.
The simplest way two or more people can be in business together where partners are jointly and personally responsible for debts.
Unlimited liability
Unincorporated business, such as sole traders and partnerships, have unlimited liability, which means that the owners are responsible for all the business's debts.
The process of forming a limited liability company such as private limited company or plc.
Limited liability
Investors (shareholders) in a limited company can only loose their investment in the business if it fails; they cannot be forced to sell assets to pay off the firm's debts.
In relation to business location, this refers to the use of e-technology, such as the internet, and email, to create a virtual market between the business and the consumer.
Where the buyer and seller 'come together' to exchange the goods or services for money. Today this may not actually mean a face-to-face meeting, but could be carried out over the internet or other telecommunication method.
Mail order
Direct marketing through mail shots leading to goods being delivered directly to customer.